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Sonic (SONC) Intrinsic Value: Projected FCF : $0.00 (As of Apr. 26, 2024)


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What is Sonic Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-26), Sonic's Intrinsic Value: Projected FCF is $0.00. The stock price of Sonic is $43.49. Therefore, Sonic's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

The historical rank and industry rank for Sonic's Intrinsic Value: Projected FCF or its related term are showing as below:

SONC's Price-to-Projected-FCF is not ranked *
in the Restaurants industry.
Industry Median: 1.435
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Sonic Intrinsic Value: Projected FCF Historical Data

The historical data trend for Sonic's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sonic Intrinsic Value: Projected FCF Chart

Sonic Annual Data
Trend Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.05 13.50 15.79 10.84 7.34

Sonic Quarterly Data
Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.84 9.78 7.09 7.06 7.34

Competitive Comparison of Sonic's Intrinsic Value: Projected FCF

For the Restaurants subindustry, Sonic's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sonic's Price-to-Projected-FCF Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Sonic's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Sonic's Price-to-Projected-FCF falls into.



Sonic Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Sonic's Free Cash Flow(6 year avg) = $54.09.

Sonic's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Aug18)/0.8)/Shares Outstanding (Diluted Average)
=(11.37706741589*54.08816+-288.846/0.8)/36.445
=6.98

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sonic  (NAS:SONC) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Sonic's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=43.49/6.9778335223328
=6.23

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sonic Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Sonic's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Sonic (SONC) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Sonic Corp operates and franchises drive-in restaurants throughout the United States. The restaurants typically consist of a building that houses only a kitchen to go along with 16 to 24 parking spaces that have their own payment terminals, intercom speakers, and menu boards. Carhops serve customers in their cars. Many locations also have a drive-thru lane and patio seating as alternatives. Sonic franchises roughly 90% of its restaurants, and the royalty revenue the company earns on franchise sales contributes roughly a quarter of total company revenue. Company-operated stores provide the balance of total revenue. Sonic owns the property on which hundreds of its restaurants are located. For those properties that house franchised stores, franchisees lease from the company.
Executives
Steven A Davis director 3776 SOUTH HIGH ST, COLUMBUS OH 43207
Lauren R Hobart director 345 COURT STREET, CORAOPOLIS PA 15275
Tony Bartel director 625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Kathy L Taylor director C/O FREDERIC DORWART LAWYERS, 124 EAST FOURTH STREET, TULSA OK 74103
Pedro Claudia San officer: President 300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Kate S Lavelle director 24089 3RD STREET, FAIRHOPE AL 36532
Federico F Pena director 711 HIGH STREET, DES MOINES IA 50392-0300
J Larry Nichols director DEVON ENERGY CORP, 20 NORTH BROADWAY STE 1500, OKLAHOMA CITY OK 73102-8260
Southeastern Asset Management Inc/tn/ 10 percent owner 6410 POPLAR AVENUE, SUITE 900, MEMPHIS TN 38119
Longleaf Partners Funds Trust 10 percent owner C/O SOUTHEASTERN ASSET MANAGEMENT, 6410 POPLAR AVE, SUITE 900, MEMPHIS TN 38119
Todd Whitney Smith officer: President and CMO 300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Craig Jeffrey Miller officer: Former Officer of Subsidiary 5008 HARTRIDGE WAY, GREENSBORO NC 27407
Robert M Rosenberg director
Michael J Maples director 2208 WINDSOR ROAD, AUSTIN TX 78703
Douglas N Benham director